Received a collection letter from Dynamic Recovery Solutions regarding a closed charged off First Premier Bank credit account. They stated they were contacting me on behalf of First Premier and was authorized to offer a settlement amount. First Premier charged this account off in 2014 and had last reported it in 2015 although it was still listed on all my credit reports. The settlement letter indicated that I could pay $262.65 of the charged off amount of $477.54 and the account would be considered settled in full. Payment of $262.65 was made directly to Dynamic Recovery Solutions via phone. Received two letters from Dynamic Recovery Solutions: first one a receipt showing payment of $262.65 and indicating a current balance of $214.89; second letter received the next day stating that the account was settled in full for the agreed settlement amount of $262.65. This letter was dated 11/28/2017. First Premier updated the reporting on this account to show the account as closed, charged off and with a balance of $214. Their update was on 12/07/2017. Am I wrong to think that this should have been reported as a settled for less account with a $0 balance due? Am I jumping the gun on this? Is it a two stage process where the OC updates to show a payment and then updates to show settled? I am so confused and worried that this is going to continue reporting a balance owed and that by making a payment I may have reset the DOFD. Any clarification or advice would be greatly appreciate.
@RobertEG wrote:The debt collector is the assigned agent of the creditor, and thus paying them is the same as paying the creditor.
Ultimately, the creditor must update the debt balance on their account to $0, and the debt collector, if also reporting, must update the amount remaining under their collection to $0.
However, you are correct in the speculation that it is not an instantaneous process by either.
Once the creditor is notified of payment, they must promptly update their reporting, but they will normally first complete all financial processing before forwarding to their update department of posting of the zero balance.
Give it at least 45 days after paying (one reporting cycle plus a couple of weeks admin time) to let the admin processing complete before disputing.
Thank you soooo very much for clarifying this. I was hoping that was the case. Hanging onto all the letters and paperwork and will see if the balance updates the next reporting cycle.